Stock indexes measure the price changes for a particular group of securities, so-called "index basket". Indices are used for assessing a group of securities or the market as a whole. Dynamic indices are important, as they reflect the changes over time and provide a reason for assessing the overall direction of the market. Absolute values of indices are generally not of traders’ interest.
The last figure standing at the end of the index name are the amount of shares used in its calculation: CAC 40, DAX 30, NASDAQ 100, S&P 500.
The best known indexes are:
- Dow Jones (DJIA);
- Standard & Poor's 500 (S&P 500);
- The NYSE Index;
- DAX (DAX 30);
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